China Factory Activity Shrinks as Growth Hurt by Weak Demand

(Bloomberg) — China’s factory activity contracted again in January as a tepid improvement in foreign demand failed to outweigh the drag from poor domestic sentiment, dealing another blow to investors awaiting more signals on how the government will support the economy.

The official manufacturing purchasing managers index reached 49.2 this month, the National Bureau of Statistics said in a statement Wednesday — above December’s reading but still below the 50 mark that separates expansion from contraction.